Executive Summary
James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement siding and backer board products primarily in the United States, Canada, Australia, New Zealand, the Philippines, and Europe.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with reasonable growth potential.
Similar Companies
Share Price & News
How has James Hardie Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: JHX has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.1%
JHX
3.0%
AU Basic Materials
2.6%
AU Market
1 Year Return
98.6%
JHX
35.8%
AU Basic Materials
19.8%
AU Market
Return vs Industry: JHX exceeded the Australian Basic Materials industry which returned 35.6% over the past year.
Return vs Market: JHX exceeded the Australian Market which returned 19.4% over the past year.
Shareholder returns
| JHX | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 3.0% | 2.6% |
| 30 Day | 6.2% | 6.7% | 4.0% |
| 90 Day | 21.2% | 15.4% | 5.7% |
| 1 Year | 103.8%98.6% | 41.4%35.8% | 25.2%19.8% |
| 3 Year | 61.1%49.1% | 33.1%19.1% | 40.7%21.9% |
| 5 Year | 177.9%139.6% | 86.6%52.6% | 62.0%25.5% |
Price Volatility Vs. Market
How volatile is James Hardie Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Should You Like James Hardie Industries plc’s (ASX:JHX) High Return On Capital Employed?3 weeks ago | Simply Wall St
Is James Hardie Industries plc (ASX:JHX) The Right Choice For A Smart Dividend Investor?1 month ago | Simply Wall St
Can James Hardie Industries plc (ASX:JHX) Maintain Its Strong Returns?Valuation
Is James Hardie Industries undervalued compared to its fair value and its price relative to the market?
35.66x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: JHX (A$29.9) is trading above our estimate of fair value (A$13.79)
Significantly Below Fair Value: JHX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: JHX is poor value based on its PE Ratio (35.3x) compared to the Basic Materials industry average (27.6x).
PE vs Market: JHX is poor value based on its PE Ratio (35.3x) compared to the Australian market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: JHX is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: JHX is overvalued based on its PB Ratio (8.8x) compared to the AU Basic Materials industry average (2.1x).
Next Steps
Future Growth
How is James Hardie Industries forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
14.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: JHX's forecast earnings growth (14.8% per year) is above the savings rate (1.1%).
Earnings vs Market: JHX's earnings (14.8% per year) are forecast to grow faster than the Australian market (9.6% per year).
High Growth Earnings: JHX's earnings are forecast to grow, but not significantly.
Revenue vs Market: JHX's revenue (7.6% per year) is forecast to grow faster than the Australian market (3.8% per year).
High Growth Revenue: JHX's revenue (7.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: JHX's Return on Equity is forecast to be high in 3 years time (30.7%)
Next Steps
Past Performance
How has James Hardie Industries performed over the past 5 years?
0.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: JHX has high quality earnings.
Growing Profit Margin: JHX's current net profit margins (10.2%) are higher than last year (7.9%).
Past Earnings Growth Analysis
Earnings Trend: JHX's earnings have grown by 0.4% per year over the past 5 years.
Accelerating Growth: JHX's earnings growth over the past year (41.6%) exceeds its 5-year average (0.4% per year).
Earnings vs Industry: JHX earnings growth over the past year (41.6%) exceeded the Basic Materials industry -37%.
Return on Equity
High ROE: Whilst JHX's Return on Equity (24.85%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is James Hardie Industries's financial position?
Financial Position Analysis
Short Term Liabilities: JHX's short term assets ($800.6M) exceed its short term liabilities ($482.1M).
Long Term Liabilities: JHX's short term assets ($800.6M) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: JHX's debt to equity ratio (137.6%) is considered high.
Reducing Debt: JHX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: JHX's debt is well covered by operating cash flow (24.9%).
Interest Coverage: JHX's interest payments on its debt are well covered by EBIT (8.3x coverage).
Balance Sheet
Inventory Level: JHX has a high level of physical assets or inventory.
Debt Coverage by Assets: JHX's debt is not covered by short term assets (assets are 0.6x debt).
Next Steps
Dividend
What is James Hardie Industries's current dividend yield, its reliability and sustainability?
1.73%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: JHX's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.34%).
High Dividend: JHX's dividend (1.74%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).
Stability and Growth of Payments
Stable Dividend: JHX has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: JHX's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (61.6%), JHX's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: JHX's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).
Next Steps
Management
What is the CEO of James Hardie Industries's salary, the management and board of directors tenure and is there insider trading?
3.2yrs
Average management tenure
CEO
Jack Truong (57yo)
1yrs
Tenure
US$2,798,022
Compensation
Dr. Jack G. Truong, BS, Ph.D., has been Chief Executive Officer and Director at James Hardie Industries plc since Janauary 31, 2019 and was its President and Chief Operating Officer since 2018. Dr. Truong ...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD2.80M) is about average for companies of similar size in the Australian market ($USD2.84M).
Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.2yrs
Average Tenure
49yo
Average Age
Experienced Management: JHX's management team is considered experienced (3.2 years average tenure).
Board Age and Tenure
3.4yrs
Average Tenure
63.5yo
Average Age
Experienced Board: JHX's board of directors are considered experienced (3.4 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 268,305 |
| Max Price | AU$17.85 |
| Entity | Company |
| Shares | 32,350 |
| Max Price | AU$17.85 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 940 |
| Max Price | AU$17.10 |
| Entity | Company |
| Shares | 1,630 |
| Max Price | AU$15.98 |
| Entity | Company |
| Shares | 2,013,956 |
| Max Price | AU$15.93 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Anne Lloyd (58yo)
Interim CFO & Director
- Tenure: 1.2yrs
- Compensation: US$83.86k
Jack Truong (57yo)
CEO & Director
- Tenure: 1yrs
- Compensation: US$2.80m
Joe Blasko (52yo)
General Counsel & Chief Compliance Officer
- Tenure: 8.6yrs
- Compensation: US$1.28m
Sean Gadd (46yo)
Executive Vice President of North America Commercial
- Tenure: 4.3yrs
- Compensation: US$1.99m
Julie Katigan
Chief Human Resource Officer
- Tenure: 0.7yrs
Natasha Mercer
Company Secretary
- Tenure: 5.9yrs
Jason Miele (42yo)
Vice President of Investor & Media Relations
- Tenure: 2.9yrs
Ryan Kilcullen (38yo)
Executive Vice President of Operations
- Tenure: 3.4yrs
Board Members
Michael Hammes (77yo)
Independent Chairman
- Tenure: 12yrs
- Compensation: US$904.36k
Brian Anderson (68yo)
Independent Non Executive Director
- Tenure: 13.1yrs
- Compensation: US$246.07k
Moe Nozari (77yo)
Independent Non-Executive Director
- Tenure: 0.2yrs
David Harrison (72yo)
Independent Non Executive Director
- Tenure: 11.7yrs
- Compensation: US$244.41k
Anne Lloyd (58yo)
Interim CFO & Director
- Tenure: 1.2yrs
- Compensation: US$83.86k
Russell Chenu (67yo)
Non-Executive Director
- Tenure: 5.4yrs
- Compensation: US$211.73k
Jack Truong (57yo)
CEO & Director
- Tenure: 1yrs
- Compensation: US$2.80m
Andrea Joosen (55yo)
Independent Non-Executive Director
- Tenure: 4.8yrs
- Compensation: US$214.73k
Persio Lisboa (54yo)
Independent Non-Executive Director
- Tenure: 1.9yrs
- Compensation: US$223.80k
Rada Rodriguez (60yo)
Independent Non Executive Director
- Tenure: 1.2yrs
- Compensation: US$78.83k
Company Information
James Hardie Industries plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: James Hardie Industries plc
- Ticker: JHX
- Exchange: ASX
- Founded: 1888
- Industry: Construction Materials
- Sector: Materials
- Market Cap: AU$13.485b
- Shares outstanding: 443.00m
- Website: https://www.ir.jameshardie.com.au
Number of Employees
Location
- James Hardie Industries plc
- Europa House
- 2nd Floor
- Dublin
- Co. Dublin
- 2
- Ireland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| JHX | NYSE (New York Stock Exchange) | SPONSORED ADR | US | USD | Oct 1995 | |
| JHX | ASX (Australian Securities Exchange) | Yes | CDI(CHESS DEPOSITARY INTERESTS) | AU | AUD | Oct 2001 |
| JHIU.F | OTCPK (Pink Sheets LLC) | Yes | CDI(CHESS DEPOSITARY INTERESTS) | US | USD | Oct 2001 |
| JHA | DB (Deutsche Boerse AG) | Yes | CDI(CHESS DEPOSITARY INTERESTS) | DE | EUR | Oct 2001 |
| JHX | CHIA (Chi-X Australia) | Yes | CDI(CHESS DEPOSITARY INTERESTS) | AU | AUD | Oct 2001 |
Biography
James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement siding and backer board products primarily in the United States, Canada, Australia, New Zealand, the Philippines, and Europe. It operates through North America Fiber Cement, Asia Pacific Fiber Cement, Europe Building Products, Other Businesses, and Research and Development segments. The company offers fiber cement interior linings, exterior siding products, and related accessories; and fiber cement building materials for a range of applications, including external siding, internal walls, floors, ceilings, soffits, trim, fencing, and decking. It also provides planks, which are used for external siding; flat panels that are used for internal and external wall linings; floor underlayments; fiber gypsum and cement-bonded boards for interior applications, such as dry lining walls, walls in timber frame buildings, and flooring solutions; and cement-bonded boards for use in exterior and industrial applications, and fire protection, as well as non-fiber cement products. The company’s products are use in various markets comprising new residential construction, manufactured housing, repair and remodeling, and commercial and industrial applications. It markets its fiber cement products and systems under various brands that include HardiePlank, HardiePanel, HardieTrim, and HardieBacker boards, as well as other brands, which comprise Aspyre Collection by James Hardie, Artisan, Reveal, Cemplank, Scyon, Ritek, and Linea. The company was founded in 1888 and is headquartered in Dublin, Ireland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/20 10:34 |
| End of Day Share Price | 2020/01/20 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.